New Delhi: The Employees Provident Fund scheme is being reviewed to assess how better benefits could be provided to employees and two committees have been set up for the purpose, government told the Lok Sabha on Thursday.
Replying to a Calling Attention Motion, Labour Minister Oscar Fernandes, however, said there will be no amendment to the Employees’ Pension Scheme 1995 in the wake of Sixth Central Pay Commission as the two issues are not related.
He said two committees, including one headed by a special secretary, have been set up to review the EPF scheme and ensure that it brings better benefits to the employees.
“We are reviewing the scheme. We are taking a relook at the scheme,” Fernandes said.
A decision will be taken after the committees submit their recommendations, he said.
The minister said discussions are underway to see how the corpus for the scheme could be raised, which will require hiking of contribution by the government as well as the employers.
The minister said under the present scheme, commutation of pensionary benefits is permitted, which has led to the loss of Rs40,000 crore.
Employees use this facility and as a result lose their pensionary benefits, he said, adding the government has already decided to stop commutation.